I like to take lots and lots of numbers and turn them into proprietary concepts and multi-platform content. Three of my longstanding publishing creations: the valuations of sports teams, ranking actors and movie studios on bang for the buck (ROI) and the Forbes Fab 40 (the most valuable sports brands). My most recent idea was Names You Need To Know, which broadened my concept of list creation to include direct input from our audience. I also like to take apart corporate balance sheets to measure earnings quality and have a passion for economics (my MBA thesis at Long Island University was an empirical study on the cause of inflation in which regression analysis showed a significant correlation between the general level of prices and the money supply). Besides being an Executive Editor at Forbes I also have a gig as co-host and Managing Editor of the 3-time New York Emmy award winning Forbes SportsMoney on the YES Network and Fox Sports 1 with my buddies at YES, co-host Bob Lorenz and producer David Alfreds, both of whom have taught me a tremendous amount. I also regularly appear on Fox and CNBC to chat about the business, political and sports issues of the day. My brother in arms is Kurt Badenhausen, whom I have worked with for many years and knows more about sports numbers than anyone.

Cleveland Browns Being Sold For $987 Million To Tennessee Businessman

Randy Lerner is in the process of selling the Cleveland Browns of the National Football League to James Haslam for $987 million, according to someone familiar with the deal but who has not been authorized to speak about it publicly.

CLEVELAND, OH - NOVEMBER 13: Corner back Justin King #21 of the St. Louis Rams breaks up a pass in the end zone to tight end Jordan Cameron #84 of the Cleveland Browns during the second quarter at Cleveland Browns Stadium on November 13, 2011 (Image credit: Getty Images via @daylife)

Lerner had been looking for between $1 billion and $1.1 billion for the team his father purchased for $530 million in 1998. Haslam is currently a minority owner of the NFL’s Pittsburgh Steelers and is president and CEO of Knoxville, Tenn.-based Pilot Flying J, an $18 billion in sales chain of truck stops.

Last August we valued the Browns at $977 million, 2oth out of the league’s 32 teams. The Browns posted an operating loss (earnings before interest, taxes, depreciation and amortization) of $2.9 million during the 2010 season. The only other NFL team to have an operating loss that year was the Detroit Lions. The Browns have lost 67% of their games during their 13 seasons. The only team to do worse over that span? The Lions.

It has been rumored ever since Al Lerner died in 2002 that his son, Randy, who bought the English soccer team Aston Villa in 2006, might sell the Browns. He is believed to be more interested in soccer than football and has pumped over $150 million into the struggling soccer team. Two years ago the team’s fans petitioned Lerner to sell the Browns.

The Browns are a great value play by Haslam. Although the team only filled its stadium to 90% of capacity last season the Browns have historically had among the most loyal supporters in the NFL. The team that was founded in 1950 and played in Cleveland until Art Modell moved it to Baltimore in 1995 for a better stadium, used to sell out cavernous Municipal Stadium each Sunday. And despite their small media market the Browns boast one of the highest radio rights fees in football (a big advantage since national television fees are divided equally among the 32 teams). The Browns also have a lease that gives them control of Cleveland Browns Stadium and the lions share of revenues from premium seating and advertising.

The paperwork for the sale has not been delivered to the NFL offices yet and Lerner has been talking to other potential buyers. But Haslam is by far the furthest along in the process, according to my source. And since he is already familiar to the owners as a minority investor in the Steelers, it is not expected the league will have any objections.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.

TSR: The debt limit is $200 million at the franchise level. Owners can in some instances borrow more than $200 million, but the franchises cannot secure the additional debt. Owners can borrow more than the debt limit in acquiring their teams or building stadiums. In these instances, a holding company borrows the extra debt, with team or stadium revenue often pledged for interest repayment.

Maybe we will get be getting another team in Tennessee, after all Ohio has two teams. This is exciting for me, as a Tennessee native, especially here in Knoxville. This is pretty big local press also, mostly because Jim’s brother is our Governor.

It is part of the contract within the sale that you can not move the franchise. It is one of the negotiation agreements before you can even make it as far as Haslam has in negotiations. Furthermore moving the franchise would become and extra enormous risk. You already have a new state of the art stadium, a fanbase who fills to 90 percent when losing, it would be a much wiser choice to just ensure the team gets turned around and starts winning instead of going through an extensive process of moving a team. Bottom line anyways, L.A. doesnt deserve a NFL team…they already let 2 go without putting up a fight they just want to have a pissing contest with N.Y. for who can have the most pro sports teams…